Wall Street Enters Ethereum Staking? Fidelity Investments Amends ETF Application, Aims to Allow Ether Staking

Fidelity Investments has made significant revisions to its Ethereum ETF application, introducing a groundbreaking feature: the ability to collateralize cryptocurrencies. This signifies a pivotal moment where traditional finance meets the emerging world of cryptocurrencies.

Fidelity Pledges Ethereum, Ethereum ETF to Offer More Rewards

According to details disclosed in Fidelity Investments' latest amendment on March 18th, Fidelity is venturing into Ethereum pledging. The filing states, "The sponsor may pledge a portion of the assets of the pledged fund through one or more trusted pledging service providers, which may include affiliates of the sponsor, the pledging provider."

This move aims to redefine how investors interact with Fidelity and cryptocurrencies, allowing investors to potentially earn income based on Ethereum pledging rewards.

Leading Pledger Lido Could Face Competition from Traditional Institutions?

As a prominent pledging service provider, Lido currently manages up to $35 billion worth of Ethereum, demonstrating the significant potential and appeal of pledging services. If Fidelity successfully enters the pledging service, it could potentially impact Ethereum's ecosystem.

Fidelity Expands from Bitcoin to Ethereum

Since obtaining approval for its Bitcoin spot ETF in January, Fidelity has not stopped.

This financial giant has successfully absorbed approximately 132,570 bitcoins, with total assets exceeding $9 billion.

This expansion into the Ethereum field, particularly through pledging, demonstrates Fidelity's commitment to diversifying its cryptocurrency products and providing innovative solutions for its clients.

Wall Street's Entry into Ethereum Pledging - Impact on Security?

Pledging involves participation on proof-of-stake (PoS) blockchains, such as Ethereum's transaction verification, which not only supports the network's security and efficiency but also provides rewards to participants. It is believed that Fidelity's entry into Ethereum pledging may have a profound impact on the network, potentially leading to significant operational and governance changes.

In conclusion, Fidelity's revision to its Ethereum ETF, including the possibility of open pledging, is not just a simple update but may further integrate traditional finance with the cryptocurrency space.